Mode7 and Flash 10 3D?

How would you go about making a game like this?

Some people are telling me I should use “Mode 7” but what exactly is Mode7, and do I need it? Especially since flash now has “native 3d” in it (z property, rotationX, etc…)

I wouldn’t say I’m an expert in making flash games but I have made a couple already before… I’ve done games from top-down spaceship shooters, to simple tile-based games, to side-scrolling physics “motorbike” games using Box2D, so I’m not exactly an amateur when it comes to Flash games…

I’ve never done “fake” 3D though, so the concept of “Mode 7” is unfamiliar to me… Would it be more practical to use a pre-built Mode7 engine? (what is mode7 anyway, and is it any special?) Or would it be better if I just coded my own engine for this… After all, it doesn’t seem that complex, theoretically speaking… I can imagine creating the ground using tiled sprites and rotating their X axis to 90 degrees or to something of that effect…